Hilco emerges as key bidder for HMV

Hilco has emerged as one of the front-runners to buy HMV out of administration
amid suggestions that some of the world’s biggest music labels and film
studios are willing to back a bid from the restructuring investor.

My household has joined the swelling, indignant ranks of the Wronged By HMV Brigade, all of us gloomily clutching useless credit-card sized pieces of plastic Photo: REX FEATURES

Universal Music, Warner Music and Sony are thought to have signalled that they favour an HMV bid by Hilco, a firm that specialises in buying retailers out of administration and turning them around. The music companies want to avoid being left short-changed by having to rely on the low-price regimes of supermarkets and internet distributors.

If Hilco – which bought HMV Canada in 2011 – buys the UK-based HMV, it is believed that the music companies may be willing to cut the price of CDs, DVDs and give HMV generous credit terms.

20th Century Fox, Universal Studios and Warner Brothers were also reportedly on the verge of throwing their weight behind the Hilco rescue attempt.

Last week HMV, which has 223 stores, collapsed into administration, making it one of the biggest retail casualties of the economic downturn.

Deloitte was appointed as administrator and the firm is still "hopeful" of rescuing the 92-year-old entertainment retailer. Deloitte is thought to have received "well over 50" expressions of interest from potential bidders, amid hopes of retaining between 50 and 100 of the high street stores.

HMV was not the only retailer to collapse last week, as DVD rental company Blockbuster also fell into administration. Plans were announced over the weekend to shut 129 of Blockbuster's 528 stores and make 760 of the company's 4,190 employees redundant. Deloitte is also running the administration.